The European Commission has relaxed its CORSIA requirements for Phase 1 because there are not enough eligible carbon credits available. Airlines need offsets for international flights, but supply is far below demand. The Commission dropped its additional quality criteria for now and will enforce stricter rules only in the 2027-2035 period. This change affects how airlines comply with emissions obligations under CORSIA. The shortage of high-quality credits means regulators had to adjust timelines. For carbon market participants, this signals that current supply cannot meet policy targets without flexibility. The delay gives credit suppliers more time to ramp up, but it also raises questions about market readiness.
